Energy Minister outlines reasons for SIWA removal from SOE status

Deputy Prime Minister and Minister for Mines, Energy, and Rural Electrification (MMERE), Hon. Bradley Tovosia says the removal of the Solomon Islands Water Authority (SIWA) as a State Own Enterprise (SOE) was necessary to ensure the Authority is strengthened to deliver its mandated public services.

Delivering a statement under Standing Order 24 in Parliament this week, Tovosia said the removal means the Authority is no longer an SOE, however, it is still a statutory body as provided for under the Solomon Islands Water Authority Act.

This decision was not taken lightly, but driven by the persistent need for SIWA to deliver its services to the people of the Solomon Islands.

“The underperformance of Solomon Water across multiple fronts, including operational setbacks and failure to continuously update my Ministry leaves us with very little choice but to remove SIWA as an SOE,” Tovosia said.

Solomon Water has been plagued by weak governance structures that have eroded its accountability to both the Government and the people of Solomon Islands. Poor oversight and the mismanagement of resources have led to inefficiencies and a failure to meet critical performance indicators.

According to Tovosia, SIWA has consistently under-delivered on its mandate to provide reliable water services, particularly in urban areas as it failed to achieve the deliverables under its 5-year Action Plan 2017-2022.

“This failure is in direct contravention of the Solomon Islands National Development Strategy (NDS 2016-2035) and international commitments under the United Nations Sustainable Development Goals (SDGs), specifically Goal 6 on ensuring the availability and sustainable management of water and sanitation for all,” Tovosia said.

Much of Solomon Water’s infrastructure remains outdated and is in dire need of modernization. Leaking pipelines and run-down facilities have resulted in high non-revenue water losses and frequent service disruptions. Despite access to resources and partnerships aimed at improving infrastructure, Solomon Water has been unable to execute the necessary upgrades.

“This failure to invest in critical water infrastructure has significantly hampered the nation’s progress toward the Pacific Water and Wastewater Association’s (PWWA) water resilience targets for Pacific Island nations,” Tovosia stressed.

Solomon Water has also demonstrated a severe lack of coordination with key government ministries, including the Ministry of Finance and Treasury and the Ministry of Mines, Energy, and Rural Electrification, particularly on issues such as board appointments and governance strategies. This neglect has negatively affected SIWA’s ability to fulfill its mandate in delivering services to our people.

Furthermore, Solomon Water’s recruitment processes have been tainted by a lack of transparency, which has raised serious concerns about the integrity and competence of its leadership. The reluctance to present recruitment reports for review by Government authorities has further undermined confidence in the organization’s capacity to lead critical national water projects.

Another reason for SIWA’s weak performance is the incompetence in project management, particularly within Solomon Water’s Project Management Unit (PMU).

Tovosia stressed that the recruitment of inexperienced personnel has led to consistent delays in key water projects such as Kongulai, Noro, and Tulagi. These delays, coupled with missed milestones have not only postponed progress but also contributed to the failure of Solomon Water to contribute meaningfully to national development efforts.

This is an example of how a lack of transparency in recruitment leads to delays in projects, resulting in people suffering.

Furthermore, Tovosia said Solomon Water has breached numerous contractual obligations, including service levels and delivery timelines. These breaches are compounded by reports of misleading practices in financial dealings, further eroding public and government trust in the institution.

“This is unacceptable for a utility responsible for delivering an essential service such as water,” Tovosia said.

Solomon Water has consistently struggled with financial management, leaving it unable to sustain its operations or invest in crucial infrastructure upgrades.

Additionally, service quality has been inconsistent, with many citizens—particularly in peri-urban areas—still lacking reliable access to clean water. This has posed severe public health and sanitation risks, further illustrating the utility’s failure to meet both local and international standards.

The Cabinet decision of August 16^th, 2024, officially published in the Gazette on August 26, 2024, removes Solomon Water’s SOE status. This move is made to enable the Government to drive the projects identified under the Urban Water Supply and Sanitation Sector Project, which was supposed to be delivered between 2020 and 2024.

Tovosia further explained that the removal of SIWA from its SOE status does not affect the workforce. He added that only leadership roles, particularly within the senior management, will be re-evaluated to ensure qualified individuals are at the helm of the utility moving forward.

Solomon Water’s core functions, such as water resource management, quality assurance, and infrastructure maintenance remain under the SIWA Act, which remains intact and applies to SIWA.

SIWA’s contractual obligations made when it was an SOE still stand and will be honored. The new Board will ensure that SIWA is discharging these contractual obligations.

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